www.eastafricaforum.net http://www.latimes.com/news/printedition/asection/la-fg-ethiopia11-2008aug11,0,3819655.story Los Angeles TimesIn Ethiopia, jailed singer Tewodros Kassahun is a political symbolEdmund Sanders
August 11, 2008 Fans say the reggae star was framed because his music was seen as anti-government. 'You don't know where the line is -- until you've crossed it,' says one Ethiopian.ADDIS ABABA, ETHIOPIA -- Sequestered in a dank prison cell here, Ethiopia's biggest reggae star awaits trial in a deadly hit-and-run case that has galvanized the nation.
Federal prosecutors say Tewodros Kassahun, dubbed the Bob Marley of Ethiopia, fled after striking a homeless boy with his BMW. They call it a case of celebrity bad behavior.
YouTube video: Teddy Afro
Fans say the singer, also known as Teddy Afro, is being framed because of his music's perceived anti-government message. In one song, he accuses Ethiopia's leaders of promising change, but bringing only "a new king."
Fans also ask why Kassahun was not charged until April, though the boy was killed in 2006.
Kassahun's controversial incarceration has spurred small protests, a rarity in this tightly controlled Horn of Africa country, and is fast becoming a national symbol of what some call Ethiopia's latest democratic backsliding.
After a 2005 postelection crackdown, Ethiopia's government tried to ease tensions last fall by pardoning thousands of jailed opposition supporters and allowing some independent newspapers to reopen.
"We'd hoped that was the beginning of an opening in the democratic space," said Hailu Araaya, deputy chairman of the recently formed Unity for Democracy and Justice party. He spent 20 months in jail before his release in July 2007. "But the political space is contracting again. It's clear the ruling party is determined to stay in power by any means."
Government critics point to a string of new laws targeting political parties, journalists and humanitarian agencies.
Under one new law, political parties can no longer accept foreign donations and must disclose the names of domestic contributors. Opposition groups say that restriction has dried up their financial support because potential contributors fear government retaliation.
A draft bill would ban private aid agencies and civic groups from "political" activities, such as advocating human rights, if they receive more than 10% of their funding from foreigners.
A new media law permits government censorship and jail terms for journalists.
Prime Minister Meles Zenawi said the reforms were an attempt to bring Ethiopia's laws up to international standards, noting that U.S. rules also ban foreign campaign contributions.
"We are institutionalizing democracy and getting the law right," he said. "I don't think the political space is in any way being constrained."
But critics said restrictions on foreign funding and political activism were particularly galling considering that nearly 40% of Ethiopia's government budget comes from international donors and that the ruling party has hired a Washington lobbyist to attack U.S. legislation seeking to tie aid to Ethiopia's human rights record.
"This is a nationalist charade," Human Rights Watch attorney Reed Brody said. Opposition leaders and some Western diplomats say the new laws appear to be an attempt to consolidate power before the 2010 presidential election.
Ethiopia is eager to avoid a repeat of the 2005 election, when opposition parties won in many cities, including Addis Ababa, the capital. Postelection wrangling led to the government crackdown in which nearly 200 people were killed and more than 30,000 opposition candidates and supporters were imprisoned.
In local elections this spring, the ruling coalition won handily in most locations. Opposition parties boycotted the polls after complaining that the government prevented them from fielding candidates in many districts.
Negasso Gidada, a former president who quit the ruling coalition in 2001, blamed its members' roots as former Marxist rebels for the government's heavy-handed approach. "They don't claim they want a socialist state, but the ideology is still there," he said. "They don't tolerate other ideologies."
Meles dismissed as "hogwash" claims that his government is ideologically driven.
His government is under heavy pressure from Western donors to improve Ethiopia's democratic record.
Over the last two years, Ethiopian soldiers have been accused of killing, torturing and raping civilians in their battle against an insurgency in the restive Ogaden region and of similar abuses in neighboring Somalia, where thousands of Ethiopian troops are propping up Somalia's weak transitional government.
Meles denied any systematic rights abuses in either region.
Opposition parties and rights groups are calling upon Western nations, including the United States, to use their leverage to push harder for reforms. The Bush administration, which sees Ethiopia as a key anti-terrorism partner in Africa, has dramatically increased aid to the country in the last two years.
"The international community espouses ideas about good governance, transparency and human rights, but then they help a regime that flouts and violates those fundamental rights," said Araaya, the opposition official.
U.S. Ambassador to Ethiopia Donald Yamamoto defended Washington's support, noting that most of the $800 million in Ethiopian aid this year is for emergency food and AIDS drugs. About $13 million is budgeted for military assistance.
"I don't think the American people or the Congress are going to accept decreasing food when there are photographs from Ethiopia of starving children," he said. "They are going to ask, 'Why aren't you helping these starving kids?' "
On the streets of Addis Ababa, some Ethiopians say they've noticed political improvements. But fear of government intimidation remains strong and many have interpreted the arrest of Kassahun as a warning against speaking out. Two Ethiopian journalists have been arrested for writing sympathetically about the singer's case.
"Before, when we were operating in a full-fledged dictatorship, you knew what you could and couldn't do," said one Ethiopian, who was afraid to be identified. "Now there is more openness, but you don't know where the line is -- until you've crossed it."_________________________________ http://www.theaustralian.news.com.au/story/0,25197,24159976-23850,00.html The Australian Oil price forces change to flower flowGeoff Hiscock
August 11, 2008
SOARING air freight prices this year are hastening a switch to sea transport in what will mark a tipping point for the global cut flower industry, according to the world's biggest rose supplier, Ramakrishna Karuturi.
Bangalore-based Karuturi, who aims to produce 1 billion stems a year by 2010 from his flower growing bases in India, Kenya and Ethiopia, says seaborne exports represent the new reality in the $US30 billion a year global flower trade.
"This is a disruptive element, with the potential to bring cargo costs down by at least 60 percent -- and 40 percent of a rose’s cost is freight," he told The Australian.
The value of a flower begins to wilt as soon as it is cut. Hence, high-value flower exports to key markets in Europe, Japan and the U.S. usually are air freighted to get them into customers’ hands as quickly as possible.
But the spike in oil prices - including aviation fuel - in recent years has accelerated work by flower growers and shipping companies on the seaborne alternative and its associated storage technology.
Karuturi believes the trend to sea freight, using special refrigerated containers where temperature, humidity, and other factors can be remotely monitored, will have a far bigger impact than just a cost saving for shippers.
"It is far more disruptive than just cost. It will lead to a big increase in consumer demand, and it means growers will have to extend the product life by four weeks," he said.
For example, it would mean growers in Africa or Latin America could begin shipping roses to say, Europe and the United States in January, well in advance of the peak sales date of Valentine’s Day on February 14, rather than the air freight rush that now takes place in early February.
"The cost/supply spikes associated with Christmas, Valentine’s Day, Mothers Day, Chinese New Year and Russian Mother’s Day could be a thing of the past," Karuturi said.
According to Karuturi, sea freight for flowers was initiated about eight years ago by a grower in Ecuador, for the U.S. market. Karuturi will ship his own first containers of flowers next month, from India to Singapore, and from his major production bases in Africa to Europe. Shipping roses to Australia is also on his horizon.
"It (sea freight) has been baby steps so far, but now it’s reaching traction." In Karuturi’s view, the trend to sea freight will "decimate" the European business. "Flowers will no longer be expensive," he declares.
The Netherlands has been at the centre of the world’s flower trade for decades, handling imports from growers in Africa and elsewhere, and supplying wholesalers and retailers throughout Europe. Colombia and Ecuador are the big suppliers to the U.S., while China has the largest area under cultivation for floriculture.
But since 2007, when Karuturi bought the Kenya-based Sher Agencies from its Dutch parent for about US$70 million, Karuturi has been the world’s rose king. At the same time he has added a flower business in Ethiopia, built from scratch.
"In terms of size, Kenya is bigger now (about 150 hectares under greenhouse), but Ethiopia is being ramped up and by December this year will be bigger than Kenya," he said.
For Karuturi, Ethiopia offers a better growth outlook than Kenya, where contiguous land is not available. Equally promising because of its proximity to the U.S. market is Latin America, where Ecuador, Colombia or even a greenfield site in Brazil are possibilities for Karuturi.
"We have been seriously looking at Ecuador. We want to offer a better product portfolio and de-risk our business model. Essentially it is a northern hemisphere-southern hemisphere arbitrage play. It is good to broaden the base of our production."
Karuturi, who trained as a mechanical engineer and whose family still has business interests in cables, transmission towers and processed food, insists he is "just a farmer" with a passion for agriculture.
"Five years from now, I hope that roses will only be 25 to 30 percent of our company (Karuturi Global Ltd) revenue."
While roses are ringing up the company’s cash registers – particularly in the fast-growing Indian market – what really excites Karuturi is a US$1 billion agricultural project in Ethiopia, covering a massive 340,000 hectares, where he plans to grow rice, sugar cane, palm oil and vegetables.
"That is the sort of scale you could once only think of getting in Argentina, Brazil or Australia. I couldn’t get that much land in India. But we have obtained the land in Ethiopia on long-term 50-year lease."
Karuturi aims to break ground on October 8 this year. The location is Gambella in the west of Ethiopia close to the south Sudan border, where a tributary of the Blue Nile runs through the land.
"We’ve bought the farm equipment, and lined up agricultural experts from the U.S. and Latin America to guide us in large-scale farming. We will be in production by February 2009, opening 10,000 hectares in the first quarter, and then adding 10,000 hectares a month after that," he said.
Within 14 months Karuturi hopes to have built a sugar mill, rice mill, ethanol processing plant and a palm oil refinery. Initial funding for the project is $US100 million in private equity, $US100 million from Karuturi and US$200 million of debt. In a year’s time, Karuturi plans a second round of funding.
Karuturi says his eventual goal is to create an Asian food multinational along the lines of Cargill, ConAgra and Del Monte. "These are my benchmarks."
But in the meantime, there’s a burgeoning flower demand to meet. India now accounts for less than 20 percent of Karuturi’s flower business, but the rapid growth of the Indian middle class is fast changing that picture. From college kids to middle managers to high-flying CEOs, everyone, it seems, wants to buy roses.
"This year, for Valentine’s Day, we were embarrassed by the demand," Karuturi said. "In fact, it was crazy – we had too many orders. We had to stagger our deliveries from February 14 to 17. In 2009, we’ll be delivering all through the week, not just on February 14.
He notes a growing sophistication in the Indian market; customers want chocolates, bottles of wine or cake to go with their rose orders, spending on average about $40 to $50 in 2008.
It’s not all one-way traffic for this Indian flower grower. Later this month (August) he’ll take delivery of his first batch of Australian flowers – waxflowers and proteas – imported from Craig Musson’s Wafex export business in Western Australia. With their long life, the flowers will retail in India as a premium product, Karuturi says. ______________________
http://en.ethiopianreporter.com/content/view/1027/36/ Reporter, Ethiopia Falcon acquires exploration blocks in Abay Basin
Saturday, 09 August 2008 Kaleyesus Bekele
-- To pay USD 200,000 signing bonus
Falcon Petroleum Ltd., a company registered in Cyprus and based in the UK, has acquired three oil exploration blocks with a total area of 25,875 sq km in the Abay sedimentary basin found in the Amhara Regional State.
After a series of negotiations held between officials of Falcon and the Ethiopian Ministry of Mines and Energy (MME) the latter accepted the proposal. The ministry last month forwarded the petroleum exploration and development license to the Council of Ministers for endorsement.
Accordingly, the council of Ministers approved the license two weeks ago. Alemayehu Tegenu, Minister of MME, and Mr Radwan Hadi, deputy managing director of Falcon, on Thursday signed the petroleum exploration and development agreement and production sharing agreement (PSA) at the Sheraton Addis.
The agreements will enable Falcon to prospect and develop petroleum resources in the exploration areas Found in Woreilu locality, in northern Ethiopia, in the Abay Basin. The Abay Basin is one of the five sedimentary basins believed to be oil prospective in Ethiopia. The Woreilu locality has been for long known for oil seepage.
Minister Alemayehu told Reporters that the exploration period will be four years, adding that the petroleum production period was for the next 25 years. "The company will be fully responsible to cover all costs necessary for all petroleum operations," Alemayehu said.
Falcon is the first company to engage in oil exploration activity in the Abay Basin. A local company called K&S and MME have been jointly conducting geological studies in the Woreilu locality, where there has been continuous oil seepage for the past many years.
K&S, which brought Falcon to Ethiopia, has been collecting geological data in collaboration with falcon for the past one year in Woreilu. K& S and Falcon have conducted gravity survey in the exploration area.
Mr Radwan said the oil seepage and the results of the survey were encouraging. However, he said the area was unexplored, adding that there was limited available data collected from the locality. Radwan told The Reporter that the Abay sedimentary basin was covered by thick basalt rock, adding that it was difficult to conduct seismic survey and drill exploration wells in such areas. However, he said his company would bring new technologies and equipment suitable to collect seismic data and drill exploration wells in areas covered by basalt rock.
Falcon has allocated an initial capital of 15 million dollars for the Woreilu oil exploration project. A senior official with MME told The Reporter that Falcon agreed to pay 200,000 dollars signing bonus to the ministry in the coming 30 days. Established in 2005, Falcon is engaged in oil exploration projects in Mali, Pakistan and west Siberia.
Dr Tilahun Mamo, a geophysicist at the Addis Ababa University, told The Reporter that areas covered by volcanic rocks usually discourage oil companies from engaging in exploration work. Dr Tilahun, who conducted a study in Woreilu, said that exploration work in areas covered by volcanic rocks was challenging, adding that it requires more capital. However, he said it was possible to discover what nature stores in the sedimentary basin found under the volcanic rock. "It is possible to explore such areas by applying new technologies," he commented.
Dr Tilahun said that the thickness of the basalt rock ranges from 900 to 2,000 meters. During his study Tilahun identified a sedimentary basin beneath the basalt rock. The basin has an average thickness of 5,000 meters.
Dr Tilahun believes that there was a crude oil reserve in the basin. "There is the source rock that generates oil. There is the reservoir, and cap rock that you need to have to discover oil. The heat and pressure emanating from the basalt rock had matured the sedimentary rocks. I think the oil seepage is coming from the sedimentary basin," he said "I have no doubt about the existence of oil reserve in Ethiopia," he concluded.
Ogaden, Gambella, Omo, Abay and Mekelle are the five basins in Ethiopia. For the past many years companies focus was on the historic Ogaden basin. The history of oil exploration in the Ogaden basin dates back to the 1950s. Dozens of foreign oil companies have prospected for oil in the Ogaden.
In 1973 an American company Tenneco discovered natural gas reserves in Calub and Hillala localities. In recent years there has been a growing interest in other areas like Gambells, Omo and Afar regions. “We will continue to redouble our effort to attract oil companies to explore other regions,” Alemayehu said.
At present, there are six companies engaged in oil exploration in Ethiopia and Falcon is the seventh company to sign PSA.
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